Abstract
PurposeThis study aims to identify the legitimacy issues raised during a sustainable business model innovation, deployed by an Italian company, which was analyzed through the lens of the legitimation theory and the business model innovation theory.Design/methodology/approachA single case study methodology is employed for empirical research. Semistructured interviews, with top and middle management, were conducted together with the analysis of several internal and external documents, to corroborate the case analysis.FindingsResults show how the potentiality of digital technologies allows the development of new sustainable business models, which, though, still need to gain legitimation to be accepted. The study findings allow drawing both on the business model innovation theory and on the legitimation theory, as they show how legitimation is a dynamic concept that involves internal as well as external stakeholders to support business model innovation.Originality/valueThe paper is novel, since it addresses the topic of sustainable business models development, showing how companies can get legitimation. The paper builds on existing theories and provides a practical example.
Highlights
In the last decades, many digital technologies have been introduced into the design, production and sales processes, from robots to big data analytics and artificial intelligence (Ardito et al, 2019)
Given the uncertainty of Sustainable business model innovation (SBMI), we suggest that organizational conformity to new established model transformation sustainable norms and practices will be possible only to the extent that those norms and practices are themselves legitimate, credible and valued (Glynn and Marquis, 2004)
By presenting a case study, this paper aims to contribute to filling in this gap
Summary
Many digital technologies have been introduced into the design, production and sales processes, from robots to big data analytics and artificial intelligence (Ardito et al, 2019). Technology enables faster innovation, search for new products, processes, new ways of communication and business growth (Fletcher, 2015; Wu et al, 2018a, b; Presch et al, 2020). This is nothing new in itself (Rothwell, 1992).
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